U.S. applications for unemployment benefits rose to 219,000 for the week ending Feb. 1, according to statistics released by the Labor Department Thursday, an increase of 11,000 from the previous week.
Analysts were projecting only 213,000 new applications.
The four-week average, which evens out some of the weekly volatility, rose by 4,000 to 216,750.
Last month, the Labor Department reported that job growth in December surged and unemployment fell, The Asociated Press reported. Employers added 256,000 jobs in the final month of 2024 and the unemployment rate ticked down to 4.1%.
The Labor Department is set to release January employment figures early Friday. Economists surveyed by FactSet believe that U.S. employers added 170,000 jobs in the first month of 2025, weaker than December but also still healthy, the AP reported.
Last week, the Federal Reserve held its benchmark lending rate steady after issuing three cuts late in 2024. Fed officials have been watching inflation and the labor market for signs of a potentially weakening economy. They expect only two rate cuts this year, down from previous projections of four. The total number of Americans receiving unemployment benefits for the week of January 25 climbed to 1.89 million, an increase of 36,000 from the previous week.
